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Not applicable
posted Jun 4, 2019 7:59:20 PM

How do you know when you have no tax liability when income is only social security and state goverment pension, gross is $60,000 married?

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1 Best answer
Level 15
Jun 4, 2019 7:59:27 PM

You will have no tax liability if:

1. For 2017; Your non social security income is less than $20,800 ($22,350 if one of you is 65+ or $23,900 if both are 65+) .  For 2018, the numbers are $24,000 - 25,300 -26,600.

AND

2. Your non SS income plus half of your SS income is less than $32,000.

BOTH conditions must be met. If only is one is met, you will owe and are required to file a return.

With $60,000 total; it's unlikely you meet both conditions.

6 Replies
Level 15
Jun 4, 2019 7:59:21 PM

What is the breakdown of the $60,000 gross? That is. how much is SS and how much is pension? Any other income?

Not applicable
Jun 4, 2019 7:59:24 PM

For husband and spouse, SS is $42000, State of Ca. pension is $18000. No private income

Level 15
Jun 4, 2019 7:59:26 PM

18,000 + 21,000 (half of 42000) = 39,000 which is more than the $32,000 threshold, so you will owe a small amount of tax (about $150), unless you itemize deductions. Either way, you are required to file a return.

Level 15
Jun 4, 2019 7:59:27 PM

You will have no tax liability if:

1. For 2017; Your non social security income is less than $20,800 ($22,350 if one of you is 65+ or $23,900 if both are 65+) .  For 2018, the numbers are $24,000 - 25,300 -26,600.

AND

2. Your non SS income plus half of your SS income is less than $32,000.

BOTH conditions must be met. If only is one is met, you will owe and are required to file a return.

With $60,000 total; it's unlikely you meet both conditions.

Level 15
Jun 4, 2019 7:59:29 PM

TAX ON SOCIAL SECURITY

Up to 85% of your Social Security benefits can be taxable.  There is no age limit for having to pay taxes on Social Security benefits if you have other sources of income along with the SS benefits.  When you have other income such as earnings from continuing to work, investment income, pensions, etc. up to 85% of your SS can be taxable. 

 What confuses people about this is that before you reach full retirement age, if you continue working while drawing SS, your benefits can be reduced if you earn over a certain limit. (For 2017 that limit is $16,920)  After full retirement age, no matter how much you continue to earn, your benefits are not reduced by your earnings; your employer will still have to withhold for Social Security and Medicare.

To see how much of your Social Security was taxable, look at line 14b of your 1040A, or line 20b of your 1040

https://ttlc.intuit.com/questions/1899144-is-my-social-security-income-taxable

You need to file a federal return if half your Social Security plus your other income is $25,000 when filing single or head of household, or $32,000 when filing married filing jointly, $0 if you are filing married filing separately.

Level 15
Jun 4, 2019 7:59:30 PM

State filing requirements may be different.